(MENAFN- KNN India) New Delhi, Dec 21 (KNN) Micro, Small, and Medium Enterprises (MSMEs) face an array of challenges in embracing sustainability, as per the quarterly survey conducted by analytics firm Dun & Bradstreet India in collaboration with Small Industries Development bank of India (SIDBI), reported on Wednesday.
The findings indicate that a mere 25 per cent of MSMEs claim to have internal expertise or proficiency required for implementing sustainability measures in their business operations.
Over three consecutive surveys, MSMEs consistently highlight technical expertise and the availability of capital as their primary hurdles in integrating sustainability initiatives, as per the report.
The Sustainability Perception Index (SPeX) report for the July-September quarter of 2023, derived from the survey, further emphasises that only one in three MSMEs is aware of Green Financing and the positive impact of sustainability on enhancing brand image and competitiveness.
"The apparent gap between available support (from agencies and the
government) and sustainability adoption by MSMEs needs to be bridged, especially given the national and international efforts towards achieving 'net-zero' emissions," said Arun Singh, Global Chief Economist, Dun & Bradstreet.
Despite a generally high level of awareness and willingness to implement sustainability measures, compliance remains a low priority for MSMEs.
The survey discloses that only 17 per cent of MSMEs have initiated sustainability-related policies and procedures, with a mere 23 per cent claiming prompt and full compliance with sustainability regulations.
In addition, the survey notes that only two out of five MSMEs believe that sustainability initiatives have positively contributed to retaining clients.
RK Singh, Chief General Manager, SIDBI, interprets the survey as a signal for ongoing efforts to enhance capacity building, particularly on the enterprise side.
"While awareness and willingness remain high for MSMEs on the top of the pyramid, the level of implementation needs a fillip across all sizes of enterprises," Singh added.
He emphasises the importance of understanding how enterprise leadership perceives the potential benefits of adopting sustainable, clean, green, and environment-friendly initiatives.
The survey evaluates the sustainability perception among MSMEs based on three dimensions: willingness, awareness, and implementation.
The Sustainability Perception Index, ranging from 0 to 100, witnessed an improvement from 46 in the June quarter to 48 in the September quarter, indicating progress in sustainability implementation by MSMEs.
SIDBI, in alignment with its Panchtatva mission for small businesses, operates several programs supporting MSMEs in energy efficiency, sustainable commuting, solar adoption, waste management, and environment-friendly technologies and processes.
(KNN Bureau)
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